US Prohibition Update: Racing Exemption Remains Intact
The U.S. House of Representatives on Tuesday passed the Internet Gambling Prohibition and Enforcement Act by a vote of 317-93, but defeated an amendment that would extend the ban to horse racing and state lotteries. The amendment, introduced by Rep. Shelley Berkley, D-Nev., would have eliminated "the exceptions to the bill's general prohibition against online gambling, thereby establishing a complete ban on all Internet gambling-related activities." Berkley, who was assisted by Rep. John Conyers, D-Mich., in drafting the amendment, stated that the HR 4411 is hypocritical because it does not ban all forms of online gambling. She said that Rep. Bob Goodlatte, R-Va., only exempted the horse racing industry because he knew it would vigorously oppose his bill if he did not. The amendment failed by a vote of 111-297.
totepool Now Available via Red Button
SkyBet has signed a deal enabling customers to bet on the full range of totepool products by pressing the interactive red button on the Sky remote control. Punters will be able to watch the action on TV while placing bets into tote pools through Sky Bet's "picture in picture" facility allowing viewers to monitor totepool prices at the same time as placing a bet. Sky Bet said it plans to offer this option for telephone customers and for skybet.com Web punters in the near future.
Betair, Tasmania Increase Player Scrutiny
Online betting exchange Betfair signed an agreement with the Tasmanian government last week allowing greater scrutiny of gamblers on Betfair's Web site. Betfair has acknowledged there have been several inquiries from Australian racing stewards about potentially suspicious gambling on its Web site. Tasmanian Racing Club Chairman Geoff Harper says the agreement will give racing stewards easier access to the personal details of Betfair clients. Tasmania's racing industry believes the agreement will ensure the national industry is not caught up in a scandal like the one involving leading British jockey Kieran Fallon who was charged last week with fraud relating to allegations of fixing the outcomes of races between Dec. 1, 2002 and Sept. 2, 2004. Betfair alerted the police after it noticed a string of suspicious betting patterns.
RVL Approves Betfair
Racing Victoria Limited (RVL), the governing body for thoroughbred racing in Victoria, Australia, has finally granted betting exchange Betfair permission to publish the fields of racing events in the state on its Web site, which effectively enables Betfair to begin matching wagers on racing in the state. Although it has gained approval to publish Victorian race fields and, therefore, to match wagers on its betting exchange, Betfair is not required to pay a fee to RVL; however, RVL has accepted Betfair's proposal to contribute a product fee of A$1.1 million in back taxes for its coverage of Victorian racing from 2002 to 2005. Betfair began publishing Victorian race fields on Saturday.
Fallon, 27 Others Face Race Fixing Charges
A City of London Police investigation into horse race fixing was back in the spotlight last week after 11 individuals, including champion jockey Kieren Fallon, were charged with offenses related to race fixing. The investigation, which focused on over 80 races that took place between December 2002 and September 2004, was first brought to the public's attention in September 2004 when Fallon and 15 other individuals were arrested on racing corruption allegations. Betting exchange Betfair, through a memorandum of understanding with the Horseracing Regulatory Authority (previously known as the Jockey Club), was instrumental in providing evidence for the investigation.
Twenty-eight people appeared in a London court on July 3, 2006 on charges related to race fixing, but 17 were released and only 11 were charged. Among those charged were Fallon and two lesser-known jockeys, Fergal Lynch and Darren Williams. All three face the charge of "conspiracy to defraud Betfair customers."
Fallon has since appealed his suspension from racing in Britain, but was denied by the Horseracing Regulatory Authority, which decided to uphold the suspension through the duration of the trial, which is not expected to commence before spring 2007. Fallon said he will go to the High Court and beyond if necessary to regain his status.
Churchill under Investigation as Well
Owen Churchill, owner of U.K. bookmaker Churchill's Bookmakers, has been charged by the Horseracing Regulatory Authority for breaching the rules in 10 races between December 2004 and February 2005. Churchill and jockeys Brian Reilly, 25, and Dean Williams, 24, are accused of providing information for reward, aiding and abetting a breach of the rules and endeavoring to mislead an investigating officer looking into the running and riding of the horses. The trio will appear before the HRA disciplinary panel during the week of Sept. 11.
Racing UK, Channel 4 Ink TV Deal
Racing UK and Channel 4 last month entered into negotiations over a three-year deal for live terrestrial TV coverage and new media rights exploitation of 30 U.K. racecourses beginning in 2007. The proposed partnership would guarantee the current level of 75 days of terrestrial coverage of horse racing per year. It would also involve the joint development of new services across a number of digital platforms, including broadband, mobile and pay TV.
Channel 4's existing one-year deal for racing, which expires at the end of 2006, was negotiated separately with independent racecourses and racing groups. It includes a sponsorship deal and contributions from the tote, plus additional contributions from the Levy Board that supplement the costs of producing Channel 4's racing coverage. If the new deal is agreed upon, however, the revenues would reportedly be sufficient enough to allow the tote and the Levy Board to phase out their contributions by 2009.
Youbet Apoints Business Operations GM
California online race betting and content provider Youbet.com Inc. has named Louis J. Tavano general manager of business operations for its International Racing Group (IRG) subsidiary. Tavano co-founded IRG and has been a consultant with the company since Youbet acquired it in 2005. Tavano practiced law in Las Vegas from 1985 to 1993 and from 1997 to 2000. He was general council at Bally Gaming Inc. in Nevada from 1993 to 1996.